Anglo Asian Mining Share Discussion Threads

[crazycoops] 24/7/2017 07:33

Yes I'd like to get some exposure to cryptos. I have been hanging on for a decent ETF product to be launched but one backed by real gold/silver seems like one I might invest in directly

[el_duderino_7885] 23/7/2017 20:38

Honestly I'm more interested in miners like AAZ and cryptos like Ethereum which could be valued in the 10's of thousands $ in the future.

However I am really hoping this is going to take off and it may well impact the other cryptos if it does.

In reality different cryptos have different qualities and there is probably room for four or five of the best ones given that they are limited in how many can be "mined".

If I do decide to hold physical gold if silver in the future, this platform makes complete sense to me.

Are you interested in the cryptos? I think being open to them could make you a lot of money, I was too quick to dismiss them several years ago.

[crazycoops] 23/7/2017 20:14

OK, thanks ED, it all just felt a bit scammy. Are you going to participate as a founding investor for the bullioncoin launch?

[el_duderino_7885] 23/7/2017 19:35

What do you mean by a scam?

The ABX had been operational for some time now. This is merely linking this wholesale platform with a new digital crypto currency backed by gold and silver.

It's a couple of weeks away from going live.

[crazycoops] 23/7/2017 19:03

Has anyone gone through the process of opening an account for this bullioncoin? I can't work out if it is big scam or the start of something big and disruptive

[el_duderino_7885] 23/7/2017 17:54

*what a unit
I meant to say

[el_duderino_7885] 23/7/2017 17:53

Matt I don't agree with that. The whole point of it is that it is a fully allocated digital currency/metals trading exchange so the exact opposite of what currently exists and what you refer to.

The abx (hxxps://abx.com/about/about-us/) already provides part of this functionality and they are combining this physically allocated exchange to this new crypto. currency which ultimately looks to bring fully physically allocated digital gold to everyone in the world as easy as say using your debit card.

I don't think you should dismiss this as a paper scheme because it clearly isn't - that's the entire point of it.

However whether or not it's successful and draws liquidity out of the Comex will be seen in time.

I'm not expecting any game changing event when it goes live in a few weeks but it is definitely one thing to watch.

Forgetting larger markets just look at the crypto currency space. Wouldn't you rather own a crypto currency backed by something tangible than something backed by "electronic work" or whatever it is? Very few people even properly understand how a unit of say Bitcoin actually is!

Then scale this up to Joe public and you could have a very real weapon here about to be unleashed on to the market.

[bleepy] 23/7/2017 17:24

Azerbaijan’s AzerGold announces tender

23 July 2017 15:15 (UTC+04:00)
Access to paid information is limited

[mattjos] 23/7/2017 17:05

That explanation for Bullioncoin does not reassure me in any way ... it's just another paper scheme as far as I can tell.
Certainly looks like it would be very attractive to folk who wish to move large sums of money across borders, undetected.

[el_duderino_7885] 23/7/2017 15:06

Obbig yes we've the discussing this on here - see messages from earlier in the week.

No one yet knows whether this 250 tons is related to the launch of Bullioncoin or not. Andrew seems to think this demand will definitely come in and will be a game-changer.

Call me sceptical but if this demand is real I'll be amazed if it has the impact Andy expects. Whether it's the GLD or more loaned out bullion or even Fort Knox, I've no doubt the gold will be found somehow.

I'm watching to see if the commercials continue to cover their shorts in the CoT. Usually they will start to create more naked shorts around now as the price rises ready for the next wash and rinse cycle. If they are really concerned about some upcoming physical demand event they will continue to cover and add longs and the price of gold and silver will go up very quickly as a result.

[obbig60] 23/7/2017 12:58

It seems to be the launch of Bullioncoin that Andrew Maguire thinks is going to be the trigger which ends the dominance of the bullion banks, although I find it hard to believe they are going to put in an order for 250 Tons of physical gold! I think he might have lost a decimal point somewhere.



see also:



Our own Royal mint is also getting in on the act and launching a gold back crypto currency 'later in the year', although for some bizarre reason it is only going to be available through financial intermediaries.

I can't help feeling that the value any crypto currency that isn't backed by something tangible will collapse to zero at some time in the future. Will you be able to get your money out fast enough?

[2sporrans] 23/7/2017 12:58

JBravo, Ferries

Thanks for the PSA info.

Time enough it seems.

[mattjos] 22/7/2017 21:55

zhockey supposedly got out, after 10 years, at 18.5p on 23rd April. Market will now bid him more than that for stock and he'll have to pay more to try and get back in.
I've lost track of the traders that have come and gone here over the last 2 years, skimming a few pennies and thinking they have out-smarted the market.

20p is, for even a casual observer, the big nut to crack here & we're within spitting distance. Buckley's chance of getting much of a holding when that goes.

However, one step at a time please. would much rather we build up slowly to the threshold & them simply keep chugging along @ 7-8p per month thereafter.
I don't think it will be too long before some of the daily swings in the price will be greater than the 4-5p buy price for many of us. That will take nerve but, we're so stupidly valued just now, I cant find much sense in other than buying some more & await the herd.

[jaspoland] 22/7/2017 20:57

Not to date El but I'm reading up about bullioncoin which is being launched shortly which will be backed by physical PM's.

[el_duderino_7885] 22/7/2017 16:01

Has anyone here bought any bitcoins or etherium?

[ferries5] 22/7/2017 15:10

2sporrans

For the areas they have access to, the agreement ends February 2022.
To get an extension, they must have an application with a business plan lodged with the government by February 2021.,
The 15 year agreement for areas in the occupied territories does not start until they get access

[el_duderino_7885] 22/7/2017 14:56

Matt that price only lasted momentarily, gold around £1,100 is a good comparison from back then and we really aren't far off that! :)

[el_duderino_7885] 22/7/2017 14:44

Yep I'll be looking for a significant portion of the additional free cash flow to be going in to exploration. Posters on here continue to highlight the incredible potential of the resource and this needs to be proven to the market.

It feels like AAZ could easily be a 100k + gold producer excluding the silver and copper.

Time to tap in to the incredible potential of the resources at significantly higher gold prices next year.

[mattjos] 22/7/2017 14:43

Was mulling over the current weakness of the GB£ and how it is impacting my business right now & thought I'd look at in the context of Gold.


2011: Highest Gold Price in US$ = $1,920

2011: Highest Gold Price in GB£ = £1,195


so, in US$ terms, Gold is currently down 35% from the peak

but, in GB£ terms, Gold is currently only down 19% from the peak

If we work on £1 : $1.30 as an exchange rate for the next 2 years (the BREXIT process timelines) then, Gold only has to increase 24% in $ terms to $1,554 before breaking out to new ATH's in GB£ terms.
You'd expect to see a whole new surge in Gold buying from the Brits if that breakout were to occur as they try to protect the value of their wealth

[mattjos] 22/7/2017 13:33

Thanks jbravo. Given the company relationship with the government and the level of employment it has created + using local banks for loans, I very uch doubt the government will be anything other than flexible with regards Ordubad.


From the update last week, they have used just 71,000 tonnes of the 1.1m tonnes of stacked high sulphide ore.
They processed a total of 180,000 tonnes of ore during Q2.

for simplicity sake, lets say they process 200k tonnes per quarter.

At that run rate, they have 5 complete production Quarters of stacked ore still sat at Gedabek to process + the Heaps remain productive for up to 12 months after they are first stacked.

The point I'm trying to emphasise is that the company has circa 12 month safety buffer to backstop the operation while they optimise Gedabek, Gadir and initiate Ugur.

With 'commercial' debt now having halved from over $50m to $25.2m (I discount the $3.8m advanced by Reza as he is hardly going to impose any sort of restrictive covenants on that sum), the rate of overall debt payback is accelerating every month as the interest element of the combined interest & principal repayments is coming down fast.

Not sure I'd advocate yet becoming completely debt-free but, within 12 months from now we should be down to a relatively negligible $10m or less & given their excellent history of debt management thy should easily be able to re-finance that sum on much more advantageous terms with, say, a $1m Quarterly repayment schedule. That would liberate annualised circa $10m of additional free-cashflow & would enable incremental organic capacity expansion of Flotation and Agitation processes, as required.
None of this potential is yet reflected in the mkt cap of the company but, it soon will be!

[jbravo2] 22/7/2017 12:37

@ts
From memory without checking my notes, 15yrs is up for Gedabek in 2022. I'd be very surprised if we didn't take an extra 10 years, never mind 5.

Ordubad NoD was back in 2012. By PSA we then have only 18 months to get plan for production agreed. I asked about this at AGM. We have been given special dispensation to extend that period to concentrate on Gedabek. I'm not clear how long the extension is and whether it is just an extension of the 18 months or also of the 15 years.
I'd be very surprised if it turns out to be an issue. The impression given at the AGM was none of the time periods would ever be of real concern, that the govt would accommodate all reasonable requests
The larger problem for Ordubad IMO is the proximity of Armenia. It's basically on the border. Again all from memory but that's the gist of it.

[bleepy] 22/7/2017 10:51

Predatory interest in copper rich sources/resources likely to come from those motor manufactures committing to electric vehicle production?
The gold and silver being an added bonus.

[bleepy] 22/7/2017 10:37

71,037 tonnes of ore were used from the 1.1 million tonnes of high copper content ore stockpiles in 2017.
To process this stockpiled ore, the flotation plant is being used to treat the ore to remove copper prior to leaching.
A substantial stockpile will be left when the company revert back to leaching/flotation configuration in Sept/17.
International commitment toward electric powered vehicles in combating carbon based fuel pollution will see the price of copper rise substantially. Copper scarcity predicted toward this end albeit a miriad of other applications from this metal.
The longer the stockpiled copper rich ore remains unused or even added to the more valuable it becomes. Even more so so when mention of scarcity of copper in the near future.
The admission documents already highlight the presence of high sulphide copper rich ore throughout aaz's prospects.
In conclusion Behre Dolbear believes that thorough exploration will reveal significantly more potentially economic mineralization than is presently known, especially in the Ordubad and Gedabek Contract Areas.

[2sporrans] 22/7/2017 10:32

Thanks for pointing out the handy IPO link here Mattjos; I'd not spotted it.
Though I read through much of these documents a few years back, I hadn't revisited them much since, though I ought to have.
An amazing potential at Ordubad in particular.

The IPO picture seems to have been one where the Ordubad area was intended for intensive exploration and indeed the first developments for production. However the focus shifted to the Gedabek/Gosha areas.
Do you know the reason for this; was it much to do with potential conflict with Armenia?

Basically, I first invested into AAZ just when Gedabek was coming into full production and the POG very ascendant. Back then the focus was very much on how this played out; Ordubad had almost gone off radar.

Understanding the Production Sharing Agreement and its dynamics is of course also key to a full and proper evaluation of AAZ. Something else I ought to revisit to review/refresh on say an annual basis.

So wrt to the Ordubad Contract Area and the PSA:
We have a "Notice of discovery [NoD]disclosed for one target comprising several targets" and a period of exploration underway.
I don't know when the NoD was disclosed.
As it has, AAZ must be eating up time wrt to PSA and:
"A 'development and production period' commences on the date that the Company issues a notice of discovery, which runs for 15 years with two extensions of five years each at the option of the Company. Full management control of mining in the Contract Areas rests with Anglo Asian."
So the dynamic of the PSA wrt Ordubad dictate that AAZ must want to target one or more of "Shakardara, Piyazbashi, Misdag, Agyurt, Shalala and Diakchay, which are all located within a 5 kilometre radius." sooner rather than later, with a view to development/production.
AAZ says "preliminary remote sensing study, adit cleaning and re-sampling of adits in two regions, Pyazbashi and Agyurt" which makes sense with X-ref. to the Bere Dolbear report. These are the 2 prospects with clear evidence of high grade gold resource, probably on a scale at least as big as say at Gosha.
Though Shalala's gold/copper potential is reckoned to be vast, no high grade ores have as yet been discovered as even the Soviets exploration was somewhat superficial.

They did do more at Misdag though, where although little in the way of gold has been evidenced, there is clearly a lot of copper and the grades may be good:
From the Bere Dolbear Report:
"Soviet geologists estimated a P1 resource of 686Mt resource grading 0.43%Cu.
Based on the data and cross sections, Behre Dolbear believes that this large resource estimate would require extrapolation to greater depths than the surface trenching and limited underground workings would reasonably allow. Behre Dolbear has tabulated a P1 resource of 350Mt at a grade of 0.43%Cu". This is in partially leached out shallow deposits.
"Metallurgical tests indicated that 93% of the copper could be recovered by flotation and a gold value of 2.1g/tin the concentrate produced was reported by Soviet professionals. This indicates that excellent recovery of both copper and gold can be made by standard flotation processes.
Note also: "The large Kadjaran Cu-Mo deposit in Armenia is located about 15km to the northeast of Misdag on the extension of the Misdag fault" NOTED!!

Getting back to the gold and Pyazbashi and Agyurt, where the current exploration focus is, Bere Dolbear Report::
Agyurt: "A resource estimate on Zones 3, 3a, the Parallel Zone and Zone 5 was completed in 1985. Soviet geologists estimated a C2+P1 [i.e. pretty intensive adits etc at different levels] resource of 1.13Mt at a grade of 6.39g/tAu, 23.4g/tAg and 1.28%Cu.
Pyazbashi: "Exploration at Piyazbashi has been sporadic over the period from 1961 to 1997. Work consisted of surface trenching, mapping and sampling and underground development on three levels to a depth of 300m". The main finding the Soviets made:
"Azergyzil estimated resources on eight of the quartz veins that have been evaluated in greater detail and reported a resource estimate of C2+P1 of 890,000t at 6.6g/tAu for a total of 5.87t of contained gold.

So, a lot of potential for fast track exploration and maybe even development at Ordubad. Providing of course the capital is raised and the 'Political' risks are acceptably low.

More immediately, focus is of course Ugur + Main pit / Gadir re-evaluation/modelling, followed by Bitibulag I guess, where Bleepy points out there is maybe substantial and readily [flotation] processable copper; perhaps even moreso than gold.

When exactly does the 15 year development/production period expire under the PSA for Gedabek/Gosha, anyone? And any thoughts on prospects [terms] for a 5 year extension?

[wrighty46] 22/7/2017 00:25

Thanks all. Feel even happier here about my top up a couple of days ago. Glad I'm getting it before the marten catches on. GLA